WIN Magazine - Spring 2014 - (Page 8)
THE FUTURE OF
DATA IN LONDON
BY SARAH THACKER
DATA FROM THE U.S. KEEPS GETTING BETTER
In the last few years we have seen a significant change
in the quality of data that we receive from the U.S. With
better data, we can all make better underwriting and
LONDON'S DATA HUNGER USED TO BE DRIVEN
BY THE NEED FOR RISK MODELLING AND
For the last ten years or so London's hunger for data
has been driven by the need to keep those who ultimately
provide our capital, our investors, interested in supporting binder business by providing sufficient information
to analyze books of business. There was also a need to
obtain granular information so that the risks could be
modelled to understand the likelihood of claims arising
in the event of a catastrophe, such as a hurricane.
In order to understand the nature of risk, our risk
modellers are interested in collecting data such as
primary and secondary modifiers, the full location
of the risk and details like the type of occupancy.
We will always be interested in details of risks for
modelling purposes; but over the next five years we
foresee that regulatory requirements will become a
more significant driver in determining the information
we need in London.
LONDON'S NEW DATA HUNGER IS BEING DRIVEN BY
CHANGES IN TAX AND REGULATORY REQUIREMENTS
Tax authorities and regulators globally have been
asking the Lloyd's market for more data and typically
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at a more detailed level. As an example, in the past we
asked where a risk was located from a physical perspective, but we now also need to know where the same
risk is located from a tax and regulatory perspective.
We also need to know key details of premium and
claims transactions as well as details of relevant taxes.
The Lloyd's market has traditionally been focused
on large specialty risks, but consumer business is also
being placed through various wholesale insurance
entities like MGAs, brokers, program managers and
aggregators, all working with the Lloyd's market.
The global regulators are now expecting us to have
more information on our policyholders. For example,
we need to know more about who our policyholders are
and where they are based.
KNOWING THE DATA IS THE RIGHT DATA AND THAT
THIS IS CONTROLLED, EVEN IF WE DON'T RECEIVE IT
We need to be assured that the data you are capturing is the right data, and that this is being stored and
controlled so it does not get corrupted or lost even when
we do not actually receive the data from you. Our confidence in your data accuracy and security is vital. If we
are asked to provide further data to the regulators or
tax authorities; we will of course have to request such
data from you.
We all know that London has been talking about
improving data quality for a long time; but there is now
a real cultural change in London including a regulatory
Table of Contents for the Digital Edition of WIN Magazine - Spring 2014
Cover Story: Will Technology Commoditize Your Business?
The Future of Data in London
Technology Adoption by the Numbers: Before Automating, Examine Process and People
What Appears Innovative Today Will Be Expected Tomorrow
London Market Modernization: A Continuous Path to Excellence
Lloyd’s: Behind the Scenes Toward a More Educated Coverholder
FHA Mortgages and the NFIP: Opening the Flood Gates
17 Terrific Negotiating Tips
American Jobs for America’s Heroes Campaign Makes it Easy and Free to Hire National Guard and Other Vets
In the WIN-ner’s Circle
Index to Advertisers/Advertisers.com
WIN Magazine - Spring 2014